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Medifast, Inc. (NYSE: MED) and Primerica, Inc. (NYSE: PRI) recently reported financial results for the third quarter ended September 30, 2018.
For the third quarter of 2018, revenue increased 80.3 percent to $139.2 million from revenue of $77.2 million for the third quarter last year. OPTAVIA-branded products represented 70 percent of consumable units sold for the third quarter of 2018 compared to 43 percent for the third quarter of last year. The total number of active earning OPTAVIA Coaches for the third quarter of 2018 increased to 22,600, compared to 14,200 for the third quarter of 2017. The average revenue per active earning Coach for the third quarter of 2018 increased 23.2 percent to $5,781 compared to $4,693 for the third quarter last year.
“We are very pleased with our record third quarter revenue and profitability, which reflects an accelerated rate of growth in our total active earnings OPTAVIA coaches and coach productivity,” said Dan Chard, Medifast’s chief executive officer. “We continued to successfully align our corporate and field leader activities behind a repeatable business rhythm focused on our long-term purpose and mission to offer the world lifelong transformation, one healthy habit at a time. We believe we are well positioned to deliver long-term sustainable growth and value for our shareholders.”
To read the full Medifast Q3 2018 report, click here.
In the third quarter, total revenues increased 13 percent to $484.8 million. Term Life performance reflected a 13 percent increase in net premiums year-over-year, favorable claims versus historical experience, stable persistency and a modest decline in issued policies. Strong ISP (Investment and Savings Products) performance was driven by 23 percent growth in total product sales and a 10 percent increase in average client asset values year-over-year. Life insurance licensed representatives grew to 130,658, a 5 percent increase.
“The power of our franchise was evident in the third quarter with top-line growth in each of our businesses,” said Glenn Williams, chief executive officer. “The tremendous sales growth achieved in our Investment and Savings Products segment was a highlight of the quarter. The performance of our two complementary businesses combined with capital deployment and the benefit of Tax Reform delivered a 33 percent increase in EPS year-over-year and 23.9 percent ROE in the third quarter. We remain focused on executing initiatives to drive growth in order to deliver long-term value to our clients, representatives and stockholders.”
To read the full Primerica Q3 2018 report, click here.